SEATTLE - The company that introduced the Kindle announced on Wednesday that they are planning to tackle the smartphone market with a new device called the Amazon Fire Phone.

Amazon has dropped hints about the device on the web, but they officially unveiled the Fire Phone around noon at an Amazon event in Seattle.

The Fire Phone strikes a balance in the smartphone size debate and will be smaller than the leading Android handset but slightly bigger than Apple's iPhone. It will run a version of the Android operating system that has been modified by Amazon specifically for the device.

Amazon's device will come complete with a 3D "dynamic perspective", tilt-to-scroll display and technology aimed at making real world data like UPC and QR codes useful for consumers.

Amazon hopes the phone will also drive more traffic to their dominant e-commerce platform that sells both physical and digital goods.

The Fire Phone with 32GB will start at as low as $199 for customers who agree to a service contract, or up to $649 to purchase the top-of-the-line model without a service plan, and will be released on July 25.